Asia stocks gain on Dow's record; Nikkei at new 6-year high

Asian stocks rose on Friday as Japan's Nikkei index logged a fresh six-year high on the back of a weak yen while a record close on the Dow underpinned gains in the rest of the region.

Wall Street shares continued their record-setting advance on Thursday after data showed fewer Americans than expected filing applications for jobless benefits last week, casting a positive light on the labor market. That saw the Dow Jones Industrial Average climb for a sixth consecutive session, posting its 50th record-high close of the year.

Meanwhile, the yuan hit a fresh record high against the greenback after the People's Bank of China fixed the currency's mid-point at its highest level since the 2005 landmark revalaution.

Nikkei flat

Japanese shares pared gains in choppy trade as profit-taking overshadowed optimism over a weaker currency. Still, the benchmark Nikkei closes at its highest levels since November 2007 for the fifth time in the past seven days.

Since hitting a one-month trough on November 8, the index has risen 16 percent, which means it is fast approaching bull market territory. Bull territory essentially means a rise of at least 20 percent from a recent low.

Core inflation rose to a 15-year high in November, suggesting that Prime Minister Shinzo Abe's radical economic policies are working to stimulate the economy. That saw the yen hit fresh five-year lows against both the greenback and euro.

Kathy Lien, Managing Director of FX Strategy at BK Asset Management, identifies slow wage growth and a slower Chinese economy as some of her top worries for 2014.

Sydney flat

Australia's benchmark S&P ASX 200 reversed gains to close just below the flat line, snapping a four-session winning streak, after being shut for the past two sessions. Earlier in the session, the index hit a new one-month high at 5,365 points.

A weaker Japanese currency weighed on South Korean manufactures, leading the benchmark Kospi to trade in a narrow 20-point range. A declining yen hurts the competitive advantage of domestic exporters as it makes their goods more expensive in comparison.

Thai shares shed 1.3 percent to hit a four-month low after sinking nearly 2 percent in the previous session. The government rejected calls to postpone February elections on Thursday following clashes between police and opposition protesters trying to disrupt preparations for the vote.